May 3, 2026 — The S&P 500 and Nasdaq 100 closed at all-time highs on Friday, driven by a wave of stronger-than-expected corporate earnings. The S&P 500 rose 0.29%, while the Nasdaq 100 gained 0.94%. The Dow Jones Industrial Average slipped 0.31%.
June E-mini S&P futures rose 0.19%, and June E-mini Nasdaq futures climbed 0.85%.
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Apple and Tech Stocks Lead the Charge
Apple jumped more than 3% after forecasting Q2 revenue of $111.18 billion, above the consensus of $109.66 billion. The company also predicted Q3 revenue growth of 14% to 17%, well ahead of the 9.1% analysts expected.
Atlassian surged over 29% after reporting Q3 revenue of $1.79 billion, beating the $1.69 billion estimate. The rally lifted other software stocks. Oracle and Datadog each gained more than 6%. Salesforce rose more than 4%.
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SanDisk climbed more than 8% after posting Q3 revenue of $5.95 billion, far above the $4.72 billion consensus. Seagate Technology added more than 7%. Intel rose more than 5%.
Crude Oil Plunge Eases Inflation Fears
Stocks extended gains after crude oil prices fell more than 3%. The drop came on hopes that negotiations to end the US-Iran war could resume. Iranian Foreign Minister Abbas Araghchi said Iran is ready to continue diplomatic efforts if the US changes its approach.
President Trump had earlier said he would maintain a naval blockade of Iran. Iran’s Supreme Leader, Mojtaba Khamenei, vowed not to give up nuclear or missile technologies and said Iran would keep control of the Strait of Hormuz. The strait remains essentially closed, disrupting about a fifth of the world’s oil and liquefied natural gas transit.
Goldman Sachs estimates the disruption has drawn down nearly 500 million barrels from global crude stockpiles. The drawdown could reach 1 billion barrels by June.
Mixed Economic Data
The April ISM manufacturing index held steady at 52.7, weaker than the 53.2 economists expected. The prices paid sub-index rose to 84.6, a four-year high, signaling mounting price pressures.
Trade tensions resurfaced as President Trump threatened to raise tariffs on European automobile imports to as high as 25%, claiming the EU had not fully complied with a trade agreement.
Markets are pricing in an 8% chance of a 25-basis-point rate cut at the Federal Reserve’s June 16-17 meeting.
Earnings Season Strength
Of the 317 S&P 500 companies that have reported Q1 earnings, 82% have beaten estimates. Q1 S&P 500 earnings are projected to rise 12% year-over-year, according to Bloomberg Intelligence. Excluding the technology sector, earnings are expected to grow about 3%, the weakest in two years.
Overseas markets were mostly higher. Japan’s Nikkei 225 rose 0.38%. European and Chinese markets were closed for the Labor Day holiday.
Bond Market Reaction
June 10-year Treasury notes closed up 1.5 ticks, with the yield rising 0.5 basis points to 4.376%. The drop in crude oil prices eased inflation expectations, supporting bonds. But the higher-than-expected ISM prices paid index limited gains.
The 10-year breakeven inflation rate rose to a 14.5-month high of 2.50%. European government bond yields were mixed. The 10-year UK gilt yield fell 4.8 basis points to 4.964%.
ECB Governing Council member Joachim Nagel said the ECB will need to raise rates in June if the inflation outlook does not improve markedly. Markets see an 89% chance of a 25-basis-point ECB rate hike at its June 11 meeting.
Other Notable Movers
Twilio rose more than 23% after Q1 revenue of $1.41 billion beat estimates and it raised its full-year organic revenue forecast. Reddit gained more than 12% after Q2 adjusted EBITDA of $266 million topped the $221.3 million consensus.
Veeva Systems rose more than 9% after S&P Dow Jones Indices said the company will replace Coterra Energy in the S&P 500, effective May 7. Paramount Skydance Corp gained more than 8% after Morgan Stanley double-upgraded the stock to overweight with a $14 price target.
Estee Lauder rose more than 3% after Q3 net sales of $3.71 billion beat estimates and it raised its full-year organic sales forecast.
On the downside, Roblox fell more than 18% after Q1 daily active users of 132 million missed the 143.8 million consensus. Clorox dropped more than 9% after cutting its full-year adjusted EPS forecast. Stryker fell more than 6% after Q1 sales of $6.02 billion missed estimates. Amgen declined more than 4% after Q1 product sales of $8.22 billion came in below the $8.23 billion consensus.
Bitcoin rose more than 2%, lifting crypto-exposed stocks. Strategy rose more than 7%. Riot Platforms gained more than 6%.
What’s Next
Investors will watch for earnings reports from companies including Palantir Technologies, Vertex Pharmaceuticals, and Diamondback Energy on Monday. The Federal Reserve’s next policy decision on June 16-17 remains a key focus, with markets pricing in a low probability of a rate cut.
Data from Barchart shows the current earnings season has been supportive for stocks, but rising input costs and trade tensions could pose risks. Bloomberg Intelligence notes that excluding tech, Q1 earnings growth is the weakest in two years.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
